Appraisal News and Business Tips

Posts Tagged unusal homes

8-4-16 Newz// Data verification, AMCs-percent of work, Drones

Collection and Verification of Residential Data in the Sales Comparison Approach

Appraisal Practices Board, Issued June 30, 2016, First Exposure Draft

Deadline for comments is August 12, 2016

The document includes examples for lender and non-lender work plus references to lender requirements. Extensive discussions on scope of work for different types of assignments, such as relocation, individuals, effect of zoning, estates, etc. as well as verification sources, etc. etc.

Excerpt:

Example 2 – Client: Conventional Lender Effective Date: January 20, 2015

After the four siblings receive a market value range of $139,000 to $155,000 from the appraiser, they compare this range to a $140,000 cash offer they received from a buyer who was willing to close in one week. The siblings accepted the offer because they were motivated to sell. This new buyer purchases the residence on January 15, 2015, for $140,000 cash and then decides to finance the residence with a conventional loan. In this instance, the client is the lender.

For this assignment, the lender has specific requirements regarding what data points to verify and with whom the appraiser should verity those data points. The lender also has guidelines such as the minimal number of comparable sales the appraisal will report, and a time frame within which those comparables sold. The appraiser accepted the lender’s specific requirements and produced credible assignment results within these parameters. The final opinion of market value was $150,000, with an estimated exposure time of six months.

Every client and assignment condition will have different requirements for how much sales data is collected and how that data is verified. This can include using different sources, using different levels of verification, and concentrating on the verification of different data points. The overall goal for verification is to verify data to a level that is necessary for credible assignment results, not to necessarily verify all data and certainly not to verify all data to the same level. Different levels of verification are acceptable based on assignment conditions, availability of data, and the relevance of each data point.

https://appraisalfoundation.sharefile.com/share?cmd=d&id=s58e5be211d044a79#/view/s58e5be211d044a79

My comment: Finally the APB has something useful and practical for residential appraisers!! Be sure to read and comment on this 52-page draft. Worthwhile reading. Very comprehensive on this important topic. Discusses lender issues, including CU. I have not read the entire document but plan on reading it very soon.

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How Dirt Houses Became Beloved By The Tiny House Movement

Meet the wondrous cob.

Excerpts: It’s likely that earthen homes were among the oldest structures ever built by humanity. There are a few different techniques and many names for a building made mostly of, well, dirt, but the one that’s caught on in this recent revival of the material comes from England: Cob.

See the photo of: Ancient cob high-rise buildings in Shibam, Yemen.

Very interesting and detailed with photos:

http://www.atlasobscura.com/articles/how-dirt-houses-became-beloved-by-the-tiny-house-movement

Read more!!

6-23-16 Newz:: San Francisco under water – Funny owner DIYs – C/R complaints

 In 100 Years, $77 Billion Worth Of San Francisco Property Could Be Underwater

Excerpts:

Around the city, more than 200,000 commercial and residential buildings-along with major infrastructure like the airport-are at risk from either temporary flooding or permanent loss due to sea level rise if the city does nothing to prepare. Even more dangerously, the risk extends well inland, and isn’t limited to property directly on the coast.

Armed with the new maps, San Francisco is currently creating a strategy to try to save as much property as possible. “It’s almost inevitable that, in the end, the plan will be a combination of multiple approaches,” says VanderMarck. “One approach in some areas will be to surrender to the fact that seas are rising-it’s impractical, either economically or for other reasons, to try to defend against that in certain areas.” In other places, the city may build higher walls or other defenses.

In the Ocean Beach neighborhood, for example, it’s likely that the city will reroute portions of the road that’s currently along the water, replacing some areas with open space, while also building up dunes and protecting some infrastructure like a wastewater tunnel. On Treasure Island, where the city is planning to build a new sustainable community, any new housing will be set back from the water, with parks along the edges-parks that very likely will be reclaimed by the bay.

My comment: FEMA is rezoning all the coastal properties in the U.S., including my small island city in San Francisco Bay. Of course, the big complaint was having to buy flood insurance for those who have mortgages….

Check out the full article and the very interesting graphics:

http://www.fastcoexist.com/3060770/in-100-years-77-billion-of-san-francisco-property-could-be-underwater

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Not C/R fees? File a complaint with the FDIC!!

Excerpt:

Here is what VaCAP received from an appraiser who reached out to the FDIC:

I just had a call from an extremely pleasant lady named Susan Welch from the FDIC Consumer Response Center (1-800-378-9581). I had sent a note over regarding an AMC attempting to get me to sign a “Base Fee Letter” agreeing to a drop of my base fee for full appraisals to $325 from $400-500. She said the FDIC is VERY interested in hearing from appraisers regarding AMCs paying low fees. As you know FDIC regulates the banks, who are responsible for third party oversight with AMCs they engage. FDIC wants Regulation Z to be followed and will enforce it for appraisers.

Incidentally I opted to have them proceed while keeping me anonymous, a la whistle blower status. Susan said she would be surprised if they had not investigated this within 90 days.

FDIC bank examiners will contact the bank involved and look at their procedures for engaging appraisers, look at fees appraisers are actually paid versus what is considered C&R based on things like the VA sheet and go from there.

Click here for more info plus read the comments:

http://appraisersblogs.com/low-amc-fees-fdic-appraisers-regulationz

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6-16-16 Newz//Appraiser Stalker -Mansion under $100,000 -Safest states -SBA loans

Mansion under $100,000

Mansions cost millions, right? Well, not necessarily. This week’s most popular home on realtor.com® is a mansion priced under a million. In fact, it’s priced below $100,000.

Yes, it’s in Toledo; and yes, it needs some work to bring it into fighting shape. But still, a mansion with a five-digit price tag is a rare beast indeed. The listing agent told us a recent open house attracted more than 1,000 people over two days. He added that this mansion would be worth millions if it were in a major coastal metro-making it a savvy purchase for a buyer who doesn’t mind summering on the Maumee River.

Scroll down the page to Number 1. FYI, Number 3 – Amityville Horror House for $850,000

http://www.realtor.com/news/trends/most-popular-homes-mansion-under-100k

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Twinkies Enabled the Sale of the Playboy Mansion

By Jonathan Miller

Excerpt:

It’s been a confusing week for me.

I’ve been trying to reduces the sugar in my diet and I actually feel much better. But then I was interviewed by the Wall Street Journal about the recent sale of the Playboy Mansion in Holmby Hills, Los Angles, California. Apparently the next-door neighbor who restarted the Hostess brand purchased the $200 million listing for more than $100 million but the price was not disclosed.

In other words, the sale of Twinkies made this all possible.

Read the full commentary and scroll down the page for interesting comments on free appraisals, purple formica, value of a bedroom, etc.

http://www.millersamuel.com/note/june-10-2016/?goal=0_69c077008e-bfd1d18c9f-116855313

Read more!!

6-2-16 Newz -Zestimate way off on Zillow CEO’s home, The Most Mansions, Replace Dodd-Frank?

Zillow CEO sold his home for 60% of the Zestimate.

There is nothing wrong with Zestimates, unless you want to know what your home is worth.

From Jonathan Miller’s Housing Notes

Note: Scroll down the linked page to read this section

Excerpts:

The day after the home sold for $1,050,000, the Zestimate showed a value of $1,750,405. This indicates that their CEO took a 40% haircut on the value of his home which was exposed to the market for a reasonable time and sold for 19% below its list price. But of course he didn’t dump the property. It couldn’t have been worth anything close to the Zestimate since the property was exposed to the market for a reasonable period of time and sold well below the list price which was well below the Zestimate.

The people at Zillow are smart and built a strong ground breaking brand, but that doesn’t always mean they are making the right decisions. Little did I know, when I met one of the founders at a party the day before they launched a decade ago, how much disruption they would cause. I innocently asked the question, “So, what do you do?” And in the response I heard things like “Expedia” and “Rhymes with Pillow.” Their intro to the public began with the “Zestimate” which unleashed a property narcissism within us as we have checked the value of our homes and compared those values to the houses of friends, colleagues, neighbors, celebrities, etc. That search tool was later de-emphasized as they focused on listings and building a nationwide property database.

Read this Most Interesting article, including Miller’s “insider” comments at:

http://www.millersamuel.com/note/may-27-2016/?goal=0_69c077008e-65219836a6-116855313

 

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Also, read this article from Inman about Zillow:

Excerpt:

Citing the chasm between the sales price of Rascoff’s former home and the property’s Zestimate may be one way for real estate professionals to show clients that Zestimates are, as Zillow says, only a conversation starter for pricing a home, not the final word on its value.

Philip Gray, a San Leandro, California-based appraiser, is taking this approach. Bringing up the Zestimate of the property Rascoff recently offloaded will help him deal with the frequent pushback he receives from homeowners “who think Zillow is the magic 8-ball,” he said.

https://www.inman.com/2016/05/18/zillow-ceo-spencer-rascoff-sold-home-for-much-less-than-zestimate/

My comments: One of my most popular blog postings, even today, is from a few years ago, is about Zillow. I regularly have people tell me what Zillow said their house was worth. Of course, I say that it is not very accurate, but it is hard for an appraiser to compete with a free “number”. Guess maybe I should write up something for consumers. Now I have something to say ;>

Read more!!

5-19-16 Newz: Fannie CU 3.2 – Inflated appraisals – Professional attire

5 of the oldest homes in the country (listings) Video

Worth waiting for the commercial to end. Very short video. All were built before George Washington was born, back to the 16th century.

http://www.realtor.com/videos/video-time-travel-through-five-of-the-oldest-homes-in-the-u-s-/17cbb54f-71b3-4170-a8af-17864c820fde?playlist_id=ec2ed8e8-16a1-46f8-a91e-c6753b0417e0

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Professional attire for appraisers from Dave Towne, of course…

Recommended new attire to please all AMC’s who demand that ‘we’ dress professionally.

But this actually looks best with white shorts and silver edged flip flops!


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5-12-16 Newz .Geographic competency .Killing home values .Fair housing

The Most Insane Property Description Ever

Short descriptions, click here for some humor!! Reminds me of the times I am driving to the subject, hoping the house ahead is not the one I am appraising… Probably not the Most Insane, but definitely reality-based!!

http://www.thebrokeagent.com/blog-1/2016/4/the-most-insane-property-description-ever

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These Neighborhood Amenities Can Kill Your Property Value

Excerpt: In real estate, the phrase “cash is king” is oft overused. However, if you’re struggling to sell a house in a bad ‘hood, then you already know that in reality, location is king. Purchasing a home in a great area, or an area that is up-and-coming, can help maximize the value of your home investment.

So what can tear your property value down faster than a tree through the roof? The following infographic from Realtor.com offers insight-and some will surprise you!

Link to original article:

http://blog.rismedia.com/2016/these-neighborhood-amenities-can-kill-your-property-value

My comment: Of course, the effect on value varies by location – cemeteries for example.

Read more!!

5-5-16 Newz .Using listings .CU update .Low inventory and stats

Collateral Underwriter Update from Fannie Mae

Source: Appraisal Buzz

Excerpt:

The Buzz staff recently asked Zach Dawson, Director of Collateral Policy and Strategy, Fannie Mae, to provide appraisers with an update on the development of Collateral Underwriter.

A few of the questions:

– Buzz: Can you bring us up to date on CU? What have you learned from this data initiative?

– Buzz: Can you tell us more about AQM and the objectives of that project?

– Buzz: How many appraisers does Fannie Mae refuse to accept appraisals from?

https://www.appraisalbuzz.com/collateral-underwriter-update/

My comment: Definitely hits the Hot Topics!! Nothing much new, but good to directly from Fannie Mae, in writing…

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Can Living Near a Starbucks Boost Your Home Value?

Excerpt:

It seems that being close to a Starbucks does have a marked effect on home values, particularly in the East, according to a Zillow report.

Between 1997 and 2014, homes within walking distance, or one-quarter mile, of a Starbucks appreciated 96 percent. Compared to the national average for the same time period, 65 percent, it seems having a barista close by is a smart real estate move.

http://www.forbes.com/sites/zillow/2015/08/19/starbucks-boost-home-values/#4084f9eb2c70

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Does a new Whole Foods or Trader Joe’s in Your Neighborhood Increase Your Home Value?

Excerpt:

A 2015 study by the real estate information company RealtyTrac analyzed this trend. The study included 4 million homes located in a ZIP code with either a Whole Foods or Trader Joe’s location, finding that average property values in a ZIP code with Trader Joe’s appreciated by about 40 percent since they were purchased, while homes with a Whole Foods in the ZIP code appreciated by nearly 34 percent, which matches the national average increase according to the survey.

http://realestate.usnews.com/real-estate/articles/does-the-new-whole-foods-in-your-neighborhood-increase-your-home-value

Read more!!

4-28-15 Newz .Revision requests .Stunning churches .FHA letters

Stave Churches Are All Wood, Dragons, and Beauty

These austere churches mix Nordic dragons with Christian saints.

Excerpt:

Some of the most stunning churches in the world are also some of the simplest. Stave churches are wooden houses of worship that combine the austere, peaked architecture of Christianity with the Nordic designs and motifs of a Viking great hall.

Stave churches are characterized by the “staves,” or thick wooden posts, that hold them up. Using the same woodworking prowess that made the Vikings such adept shipbuilders, traditional stave churches were often built using nothing more that expertly crafted joints and joins, with no nails or glue. The only stones used were in the base of the structures.

Take a break from appraising and Check out the beautiful fotos and interesting article at:

http://www.atlasobscura.com/articles/stave-churches-are-all-wood-dragons-and-beauty

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Game of Thrones-style mini kingdom in Oregon

Excerpt:

Let’s set the scene: You’re perched overlooking the mountains in your own 8,881-square-foot castle set on 700 acres dotted with trees and natural rock formations. All you can see for miles is your own lush, unspoiled property – this is your mini-kingdom. Your home, an ode to nature with curved walls and cloud-shaped windows, is easily a setting from an episode of Game of Thrones. But you aren’t the Lord of Winterfell, you’re certainly not scheming like CerseiLannister, and this home for sale in Ashland, OR, is not in the Seven Kingdoms but instead a fantasy-worthy getaway called Shining Hand Ranch.

Read more!!

4-21-16 Newz .Levitating houses .Murders in house .Unhappy appraisers

Levitating houses?

Excerpts:

… One architect’s proposed solution for low-lying cities that have trouble with flooding. Inspired by amphibious houses, Lira Luis’ concept asks: what if buildings could avoid flooding simply by not touching the ground at all?

As sea levels rise, some low-lying cities have started experimenting with floating buildings and amphibious houses. But one architect has another unlikely sounding suggestion: What if buildings could avoid flooding simply by not touching the ground at all?

Architect Lira Luis thought of the concept as she was working on another installation that happened to be on water and required invisible, easily removable attachments. She started using magnets for the attachments, and when she accidentally held the magnets the wrong way, she noticed that they repelled each other even through a layer of water.

Click here to read. A bit “techie” but fascinating.

http://www.fastcoexist.com/3058400/this-architect-is-trying-to-build-houses-that-can-levitate

Thanks to Matt Cook for posting this Most Interesting Link!!

My comment: This is very relevant for predicted increases in sea levels. I live in a low-lying coastal city in San Francisco Bay. Recently, part of the city’s flood maps were revised to 100 year flood levels, requiring flood insurance if you have a federally insured loan. As usual, all the complaints from owners were about having to buy flood insurance. My house is about 5-6 feet above typical high tide now. When there are very high “King” tides (high tide plus heavy rains), it is closer to high tides. Flood maps for all coastal areas in the country are being revised.


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4-14-16 Newz .Bad Banks .10 Very special homes .Future of appraising

Poll: Generally speaking, how accurate do you find MLS data in your area?

 

This week’s poll: “Now that we have been living for some time with all the new rules governing residential appraisal, do you still enjoy doing the actual appraisal work?” Go to www.appraisalport.com and vote!!

My comments: I have no idea why so many people think that MLS data is correct!! Of course, it does vary a lot among MLSs. In my area it is “reasonably accurate”, except public records data is often used (and the source disclosed). For example, on the weekly open house tour last week, an agent had 2 bedrooms in the listing, because “that is what public records says”. The second bedroom was tandem with another bedroom and very small. We all know how (inaccurate) public records are. Somehow, everyone, including some appraisers, think it is accurate. Or, worse, try to make their appraisals match public records to avoid callbacks.

To make a comment, scroll down to the post below and read other appraisers’ comments and post your own!!

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10 homes that changed America (PBS – April, 2015)

Excerpt: In its 10 Homes That Changed America, a three-part series, PBS discusses the many ways that America has been shaped by its iconic and important architecture. According to series host Geoffrey Baer, narrowing the millions of houses across America down to ten examples was a challenge. The tv show tours the ten homes that have not only passed the test of time but also paved the way for those that followed.

Here are a few, with photos and brief descriptions at the link below:

– Taos Pueblo, New Mexico (circa 15th century)

– Glidehouse, Novato, California (2004)

– Mid-19th Century Tenement, New York City

http://www.architecturaldigest.com/gallery/tour-10-homes-changed-america-pbs

My comment: Fascinating!! The first one of the 3-part series has already aired. Be sure not to miss the rest. I will let you know when the first one is available for viewing online.

Read more!!